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Austria’s ÖVP, SPÖ, and Neos take big step towards forming coalition

Austria’s centre-right ÖVP, centre-left SPÖ, and liberal Neos announced on Tuesday they would begin official talks to form a coalition government, but big differences between the parties could still scupper their efforts.

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The political landscape in Austria could be set for a significant shift.
On Tuesday the ÖVP (Austrian People’s Party), SPÖ (Social Democratic Party of Austria), and Neos (The New Austria and Liberal Forum) announced they would begin talks about forming a three-party coalition
While it is still too early to determine if these talks will succeed, the three parties are cautiously laying the groundwork for a potential future coalition, they said during a press conference.

A cautious start to the negotiations
The first round of talks between the ÖVP and SPÖ, two of Austria’s largest political parties, alongside the Neos, was initiated earlier this week. At a meeting held on Monday, representatives from the three parties began to explore the possibility of collaboration. 
While the meeting’s tone was described as “open” and “honest,” Austrian media reported that little concrete progress was made.
Discussions mainly touched on broad policy areas, including education reform and reducing non-wage labour costs. However, this was enough for them to decide on further exploratory talks (in German, Sondierungsgespräche) towards Austria’s first three-arty coalition.
READ ALSO: Austria’s ÖVP and SPÖ to meet to negotiate possible coalition

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Challenges ahead
The ÖVP, SPÖ, and Neos have significantly different political ideologies, and reconciling their views on key issues such as economic policy and taxation will not be easy.
Beate Meinl-Reisinger, leader of the Neos, emphasised that her party was not interested in merely becoming a supporting partner in a coalition between the ÖVP and SPÖ. 
“We are ready as partners,” Meinl-Reisinger said after the Monday meeting. “We do not want just to govern, but to reform”, she added. 
What’s next for the negotiations?
The three parties will now deepen their exploratory talks to reach more concrete agreements.
The key to these discussions will be finding common ground on so-called “lighthouse projects” that can unite the parties. These projects, likely to focus on policy areas with broad support, will be central to any coalition agreement. Whether these projects can be agreed upon and transformed into a coherent government programme will determine the success or failure of the negotiations.
The coming days will be critical as the three parties navigate these discussions. 
If successful, this coalition would represent a significant shift in Austria’s political landscape, with the Neos playing a more prominent role than in previous coalition governments.
READ ALSO: Inside Austria: Germany-Austria border, Trump’s tax war and more

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Austria’s first three-party coalition
Austria’s first three-way coalition would follow on from a particularly polarised national election. 
After the far-right FPÖ (Freedom Party of Austria) secured nearly 30 percent of the vote in September, it failed to form a government, with no other parties willing to engage in discussions with its extremist leadership. 
In response, Federal President Alexander Van der Bellen tasked the second-largest party, the ÖVP, with forming a majority government by negotiating with other parties.
The ÖVP and SPÖ would have a very slim majority if they formed a coalition on their own, which led to talks about the potential for a three-party government from the outset. 
Among the possibilities were a partnership with the Greens or the liberal Neos. 
However, ÖVP’s strained relationship with its current junior coalition partner, the Greens, due to ongoing policy disagreements, made including the Neos more likely. This decision to bring the liberals into exploratory talks is seen as a move to secure a broader, more stable coalition.

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The political landscape in Austria could be set for a significant shift.
On Tuesday the ÖVP (Austrian People’s Party), SPÖ (Social Democratic Party of Austria), and Neos (The New Austria and Liberal Forum) announced they would begin talks about forming a three-party coalition
While it is still too early to determine if these talks will succeed, the three parties are cautiously laying the groundwork for a potential future coalition, they said during a press conference.
A cautious start to the negotiations
The first round of talks between the ÖVP and SPÖ, two of Austria’s largest political parties, alongside the Neos, was initiated earlier this week. At a meeting held on Monday, representatives from the three parties began to explore the possibility of collaboration. 
While the meeting’s tone was described as “open” and “honest,” Austrian media reported that little concrete progress was made.
Discussions mainly touched on broad policy areas, including education reform and reducing non-wage labour costs. However, this was enough for them to decide on further exploratory talks (in German, Sondierungsgespräche) towards Austria’s first three-arty coalition.
READ ALSO: Austria’s ÖVP and SPÖ to meet to negotiate possible coalition
Challenges ahead
The ÖVP, SPÖ, and Neos have significantly different political ideologies, and reconciling their views on key issues such as economic policy and taxation will not be easy.
Beate Meinl-Reisinger, leader of the Neos, emphasised that her party was not interested in merely becoming a supporting partner in a coalition between the ÖVP and SPÖ. 
“We are ready as partners,” Meinl-Reisinger said after the Monday meeting. “We do not want just to govern, but to reform”, she added. 
What’s next for the negotiations?
The three parties will now deepen their exploratory talks to reach more concrete agreements.
The key to these discussions will be finding common ground on so-called “lighthouse projects” that can unite the parties. These projects, likely to focus on policy areas with broad support, will be central to any coalition agreement. Whether these projects can be agreed upon and transformed into a coherent government programme will determine the success or failure of the negotiations.
The coming days will be critical as the three parties navigate these discussions. 
If successful, this coalition would represent a significant shift in Austria’s political landscape, with the Neos playing a more prominent role than in previous coalition governments.
READ ALSO: Inside Austria: Germany-Austria border, Trump’s tax war and more
Austria’s first three-party coalition
Austria’s first three-way coalition would follow on from a particularly polarised national election. 
After the far-right FPÖ (Freedom Party of Austria) secured nearly 30 percent of the vote in September, it failed to form a government, with no other parties willing to engage in discussions with its extremist leadership. 
In response, Federal President Alexander Van der Bellen tasked the second-largest party, the ÖVP, with forming a majority government by negotiating with other parties.
The ÖVP and SPÖ would have a very slim majority if they formed a coalition on their own, which led to talks about the potential for a three-party government from the outset. 
Among the possibilities were a partnership with the Greens or the liberal Neos. 
However, ÖVP’s strained relationship with its current junior coalition partner, the Greens, due to ongoing policy disagreements, made including the Neos more likely. This decision to bring the liberals into exploratory talks is seen as a move to secure a broader, more stable coalition.

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